Can a default judgment lein be legally placed on my real estate?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a default judgment lein be legally placed on my real estate?
I had an unsecured credit card debt that I attempted to negotiate settlement with he bank card company but without success. The interest rate jumped to 29% . I had settled another card balance at 23% of the balance but they wouldn’t listen to my offer on this one. The account was charged off and has been sold several times, probably for cents on the dollar. I have 20 days to file an answer.
Asked on August 16, 2012 under Bankruptcy Law, Iowa
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, such a judgement can result in a lien being filed on your property. It doesn't matter what the present creditor paid for the account. The fact is that "junk debt collectors" as they are known, pay for many accounts on which they will never collect. So if they pay pennies on the dollar and happen to collect on just a few accounts, that's their profit; it perfectly permissable under the law (as long as they follow legal collections practices).
That having been said, such a lien typically does not result in a property being sold. Rather, the lien remains on the property until it is either refinanced or sold. The creditor will then be paid off out of the proceeds (however interest will accrue until then).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.